Multilateral development banks (MDBs) play a critical role in limiting climate change and helping communities adapt to its impacts. In this report, the World Resources Institute, the NewClimate Institute and Germanwatch provide recommendations to these institutions on how to “transition to a Paris alignment paradigm, ensuring that all their investments are consistent with the sustainable and resilient development the world needs.”
Key recommendations of the report:
- “The MDBs need to shift from a focus on climate finance (called a “Climate Finance Paradigm“) to an emphasis on Paris Alignment (a “Paris Alignment Paradigm“). This means looking at not only their climate finance, but also the relationship of the rest of their portfolio to the global climate goals.
- On mitigation, the MDBs should embrace the need for net zero CO2 emissions by mid-century. This means, for example, that the banks need to move swiftly within the next few years stop supporting energy sources that create CO2 emissions.
- On adaptation, the MDBs should move beyond high-level screening and one-off model adaptation initiatives to thorough mainstreaming of climate risks. This includes planning for a world that is 3-4°C warmer than today.
- The MDBs should also champion NDCs (which includes helping countries strengthen their first round of NDCs) and embrace transparency on how they are supporting the global climate goals.”